Ross William Hamilton/The OregonianThe Water House in east Portland -- a conservation-demonstration project finished this year with a price tag of $700,000 -- is among city of Portland projects targeted by a lawsuit to be filed today.

Judgment day is coming for the city of Portland and questionable projects that have shaky ties to water, sewer and stormwater rates.

The judge should order that any misspent money be returned to ratepayers, the lawsuit argues, and that an independent auditor be appointed to identify all improper expenditures since 2000.

"There needs to be consequences and accountability," said lobbyist Kent Craford, who has been leading efforts against rising utility rates and tangential spending.

Prominent lawyer and lobbyist John DiLorenzo is representing Craford and others, who recently formed Citizens for Water Accountability, Trust and Reform. Neither will say who say who is funding the legal fight, although Craford also represents business interests through the Portland Water Users Coalition, a separate group that is not a plaintiff.

DiLorenzo and Craford threatened a lawsuit Oct. 31 unless the City Council took "immediate action to provide redress for these unauthorized expenditures and rectify its future policies." City officials didn't respond and have generally declined to comment, citing the anticipated litigation.

Although each is a big-ticket item, they represent just a drop in the bucket for overall city sewer and water spending. Some environmentalists -- defending land acquisition for the storm water benefits -- have suggested the lawsuit mainly would benefit companies that have massive utility bills, not regular ratepayers.

"It really has been a full-frontal assault" on various projects, said Bob
Sallinger, conservation director for the Audubon Society of Portland. "I think they’ve been demagogued, they’ve been used to undermine confidence in
the (sewer) agency without looking deeply at what the money’s going for and the
justification."

Joining the Water Accountability group in the lawsuit are real estate agent Millard Christner; Paige Craford, who is Craford's sister; and Lloyd Anderson, a Portland commissioner from 1970-73.

DiLorenzo said "the law isn't overly developed" on utility spending. He expects city attorneys will try to have the case dismissed, or they may argue that state law gives politicians more leeway than the city charter over spending decisions.

If the case moves forward, he said, it could take more than a year to resolve.

"We've got some very interesting legal issues that I'm sure we're going to debate with the city attorney," he said. "But I think we're on the side of justice in this one. And I am willing to venture a guess that the majority of the citizens of Portland agree with us."